IT SO HAPPENS Y Latest Deadline in the State Ar 471att CLOUDY, WARMER See Page 4 VOL. LX, No. 162 ANN ARBOR, MICHIGAN WEDNESDAY, MAY 24, 1950 SIx P Russia Accused of Building erman rm House Okays Foreign Aid Bill, 247-88 Measure Meets Senate Challenge WASHINGTON - (MP) - A bill authorizing $3,120,550,000 in for- eign economic aid was passed by the House, 247 to 88, yesterday, but ran into immediate difficul- ties in the Senate. The measure is designed to help Western Europe and other areas combat the spread of Commun- ism. WHEN THE BILL reached the Senate floor, Sen. Taft (R-Ohio) promptly challenged a section dealing with President Truman's "Point Four" program of aid to undeveloped areas of the world. The Ohio senator announced 'he would seek to have a Sen- ate-House conference commit- tee agreement on the bill re- *ected. Charman Connally (D-Tex) of the Senate Foreign Relations Committee denied there was any intent to subsidize or guarantee foreign investments, but at one point he told the Senate: "I have very little faith in the point four program." * * * THE LEGISLATION authorizes funds for a third year of the four- year Marshall plan for European recovery, along with other multi- million-grants to South Korea, non-Communist China, Palestine refugees, children's aid and the "Point Four" program. A separate bill providing the actual cash will be subject to later votes in both chambers of Con- gress. 'U' Students Testify In Bias Case A research fellow in the chemi- cal engineering department and a graduate student testified yester- day in the trial of Ben Sekaros, charged with violating state anti- discrimination statutes. Sekaros is proprietor of a Huron Street tav- ern. Albert Chapman, complaining witness, has charged that Sekaros refused to serve Mrs. Laura Thompson, a Negro, because of her race. CHAPMAN took the witness stand yesterday and pointed out that he and Mrs. Thompson left the tavern after Sekaros said, "You've had enough; you're not getting served." Both Chapman and Mrs. Thompson denied, under oath, that they had had any intoxi- cating liquors that day. Jacob Geist, research fellow, testified that Mrs. Thompson and Chapman were not intoxicated shortly after Sekaros refused to serve them. JOHN SLOSS, Grad., stated under oath that Mrs. Thompson and Chapman were sober when he was with them approximately half an hour after they left the Huron Street tavern. The trial will resume at 9 a.m. today in the Ann Arbor Munici- pal Court. John DeVine, assistant prose- cutor, and Carl Stuhrberg, de- fense attorney, agreed on an all- male jury yesterday. There is one Negro among the six men judging Sekaros. Americans To Quit Formosa GM, UAW Approve Five Year Contract Agree On $100 Monthly Pension, Provide For Annual Hourly Raise DETROIT-(AP)-General Motors Corp. and the CIO United Auto Workers agreed yesterday on a new five-year contract that grants pensions and a four-cents-an-hour wage increase now and. each year for the duration of the five-year agreement. Pensions of $100 monthly, including Federal Social Security bene- fits, are provided for 65-year-old workers with 25 years service. * * * THE NEW AGREEMENT provides for the following benefits: A $100 pension including social security at 65 after 25 year's service, and rising to $117 after 30 years if Congress passes present amendments boosting social security. , Senate OKs Portions of Hoover Plan By The Associated Press WASHINGTON - Three more proposals by President Truman to streamline the Government were approved by the Senate yester- day, permitting 16 of the Presi- dent's 21 new reorganization plans to become law at midnight last night. The three proposals that pass- ed by a heavy majority were re- organization of the Commerce De- partment, shifting certain post- office buildings to the General S e r v i c e Administration, and switching control of advanced planning and war public works to the Housing and Home Finance Agency. * * * UNDER THE PROPOSALS, the Maritime Commission is trans- ferred to the Commerce Depart- ment, Secretary of Commerce Sawyer is given supreme authori- ty over all the department's bu- reaus, and the Labor Department is strengthend by the addition of two more agencies dealing with wage problems. The passage of the 16 pro- posals was cheered last night by Herbert Hoover who headed the bipartisan commission that drew up the reorganization plans. Four more plans sent Congress this month by President Truman will become law in July unless ve- toed. * * * Hoover Plan ApathyHit Public apathy is allowing Con- gress to bypass the recommenda- tions of the Hoover Commission on the reorganization of the Post Office Department, Prof. C. Ferrel Heady of the political science de- partment said last night. Prof. Heady spoke at a meeting of the Citizens Committee for the Hoover Report. He urged members of the Com- mittee to write Congressmen to push for the passage of the pro- posed reorganization acts. "The main responsibility for the regular deficit borne by the Post Office De- partment rests, not with the De- partment's executives, but with Congress," Prof. Heady declared. A cost-of- i v i n g-o ne- e n t wage boost or cut for every rise or fall of $1.14 in Bureau of La- bor statistics index. A four-cent hourly guaranteed annual raise for each year of the five-year contract, starting Mon- day. A modified union shop, requir- ing new employes to join for at least a year after 90 days but al- lowing old non-union men to stay out of the union. * * * WALTER. REUTHER,. UAW- CIO president described the agree- ment as "the most significant de- velopment in labor relations since the mass production industries were organized." He quoted CIO president Phil Murray as saying it was "amazing - real progress." Except for Federal benefits, the pensions are entirely com- pany financed. If Federal pay- ments go up, pensions go up that much. A cost-of-living formula adopt- ed two years ago by GM and the UAW is still retained. Under it, wages are tuned to the cost of liv- ing index of Bureau of Labor Statistics - except they can't be cut more than three cents under present levels. But they could go up indefinitely. There was no show of bitterness, such as marked the end of a 100- day UAW strike against Chrysler Corp. May 4. "If," Reuther said, "we had ac- cepted Chrysler's original propo- sals, we could never have reached this agreement with General Mo- tors." T/' Graduate OpensCourt By The Associated Press MIAMI-A Negro graduate of the University of Michigan Law School has opened up Florida's first all-Negro court since recon- struction days. The attorney,52-year-old Judge Lawson E. Thomas, was adminis- tered his oath of office Monday. In his first case as a magistrate, Thomas fined John Rivers, anoth- er Negro, for disturbing the peace. Before entering the Michigan Law School, Thomas worked his way through Florida A & M Col- lege at Tallahassee. Thomas has been practicing law in Miami since 1935, and was se- lected unanimously for the mag- istrate's job by the City Commis- sion on April 19, 1950. Miami's City Commissioner, Rob- ert Floyd, who instigated the all- Negro Court in August 1949, hailed the move as "a sign of progress and fair play that typifies Miami." Only cases involving Negroes will be tried in the court. Arrest Fuchs Associate For Espionage Named Contact For Jailed Spy By The Associated Press PHILADELPHIA,-(P)-A 39- year-old Philadelphia man was arrested on espionage charges last night, accused of "dealing" with British spy Klaus Fuchs. The man, Harry Gold, was held in $100,000 bail after a hearing. Gold was arraigned before U.S. District Judge James P. McGraney in a whirlwind hearing called shortly before 10 p.m. in the Fed- eral Building in downtown Phila- delphia. McGraney set a further hearing for June 12. * * * A FEW MOMENTS earlier, the government had announced in Washington that Gold was arrest- ed on espionage charges which were based on information sup- plied by Fuchs. Fuchs is the former top Bri- tish atomic scientist serving 14 years for passing atom secrets to Russia. Gold has admitted contacts with Fuchs and given a detailed ac- count of his activities, the Justice Department said in a joint an- nouncement by McGrath and FBI director J. Edgar Hoover. * * * IT SAID Fuchs turned over atomic bomb secrets to Gold in this country. As a British Research worker, Fuchs frequently visited the United States during the war and postwar period. As an offi- cial British government visitor he had access to important atomic laboratory work at Los Alamos, N.M., and elsewhere. The FBI said it had learned that Gold first met Fuchs in New York's East Side early in 1944, and that they had other subse- quent contacts in Brooklyn, the Bronx, Manhattan and Queens. The formal complaint filed in the case alleged that Gold, in turn, gave atomic secrets to one "John Doe," described as "a rep- resentative, officer, agent and em- ploye of a foreign government, to wit, the Union of Soviet So- cialist Republics." The agent was not otherwise identified in the formal complaint. East German Youth Warned By Red Police Police Force Said To Be Red Troops Protest Sent By Western Powers WASHINGTON - (AP) - Th Western powers accused Russi yesterday of building a secret Gex man army under the guise of police force. In separate notes to the Krem. in, the United States, Britain an France declared the so-called Eas German police force is armed wit military weapons and violate every agreement made by the fot powers against, the militarizatio of Germany. I -Daily-Wally Barth OPEN AIR CONCERT-Several hundred students, faculty members and townspeople took an early evening pause last night in front of Angell Hall to listen to the Varsity Band's annual outdoor con- cert. The spectators also'spread out over the lawn while the Band, led by Conductor Jack Lee, presented a program ranging from symphonic music to American folk songs. Czechs Ask Reduction In U.S. Offices PRAGUE, CZECHOSLOVAKIA -()-The Czechoslavak Foreign Ministry last night demanded that the United States reduce its American diplomatic staff in this country to 12 and its Czech em- ployes to seven. The demand followed the re- cent two-thirds reduction of the American diplomatic staff in re- sponse to the April 28 request of the Czechslovak government. THE FOREIGN ministry note said the "unjustified reprisal" of the American government last week in ordering a corresponding two-thirds reduction in Czech diplomatic personnel in the Unit- ed States was a "crude violation of usual inter-state relations." Government officials in Washington indicated the United - States probably will reply with a second round of retaliation. State Department records listed about 16 Czech officials and an equal number of clerical employes still in the United States. Originally the American diplo- matic staff in Czechslovakia num- bered 67, the State Department said, but now numbers only 15 due to various withdrawals demanded by the Prague regime. SAC Tables IFC Proposal A proposal to change the Stu- dent Affairs Committee regula- tion on fraternity eligibility was tabled at last night's meeting of the committee. The proposed change put forth by IFC alumni would have the fraternity's grade average include only the grades of actives living in the fraternity house. The pre- sent grade average requirement of 2.4 would remain as is. The motion was tabled pending further testimony by members of the Alumni Council and represen- tatives of other groups that might be affected. NO MORE GRIPES: Check Shows Michigras Repayment Understood A spot check of houses which had booths in Michigras revealed last night that the system of re- imbursement of booth expenses was generally understood by the houses. Monday Winchell house presi- dent Deil Wright, '52, lodged a formal complaint of the Michi- gras booth reimbursement system with co-chairman Bill Peterson, State GOP Heads Back Budget Cut By The Associated Press Two State GOP leaders yester- day defended the recent cuts in the State budget, and attacked Democratic leaders for attempt- ing to hike the "economy budget." In Ann Arbor, Secretary of State Fred Alger, Jr., who is a Republican gubernatorial candi- date, urged "a tightening of our belts on a state level." SPEAKING at a "Alger for Governor" meeting, he scored William's budget request and pre- scribed "work for the day when we may control the Republican Congress and elect a Republican president. In Sault Ste. Marie, Speaker of the State House of Repre- sentatives Victor Knox charged that State Controller Robert Steadman "wants to wreck the economy budget set up by the legislature." The House Speaker declared that if the Governor's budget re- quest had been granted, "it would have meant $20 additional taxes for every man, woman, and child in the State." Meanwhile, Western Michigan College in Kalamazoo yester, day took action to avoid salary and wage reductions as a result of the legislature's adoption of an "economy budget." '50BAd, saying that he thought the present reimbursement set- up was faulty and would keep houses from participating in fu- ture Michigras. Wright said that the reimbursement plan hadn't. been made clear. PETERSON said that nearly every organization participating in Michigras understood that the system of reimbursement made it necessary for them to keep down their costs. He said that the Michigras central committee originally set aside $1200, the cost of total reimbursement to all booths in the 1948 Michigras, as an ade- quate reimbursement amount. "Several booths engaged in free spending, running the total costs to nearly double the expense budgeted. Since we fortunately made a large profit, we felt justi- fied in compromising at the $1800 figure, at which most of the houses received full reimburse- ment," he added. OK European Currency Plan PARIS - (P) - A new European Payments Union, made possible by a British decision to pitch in fully with other European countries in breaking down currency barriers, will go into effect July 1. This was disclosed yesterday at a meeting of the Organization for European Economic Recovery. The plan calls for Marshall Plan coun- tries to pool their trade credits and deficits in a central clearing house to be called the European Pay- ments Union. The key part of the plan is that with half of the world trading in sterling, sterling is to be recognized as an international currency. While details of the scheme are not fully worked out, a detailed but still incomplete outline will be submitted to ministers represent- ing the Marshall Plan countries at a meeting June 2. THE WESTERN governments then said it would be a good idea 'or the Russians to disband this iast German force - althougt )bviously none expect that to hap- -en. The protests were mostly "for the record" - another Western )last at the East in the cold war The American note said the Russian conduct in this case is simply; another action by which the Soviets have "destroyed world confidence" in their sin- cerity and peaceful intentions. The 50,000-man police force, the United States told Russia, is armed with machine guns, howitzers, an- ti-aircraft cannon, mortars and tanks. It receives basic infantry artillery, and armored weapon, training. It does not have ordinar3 police duties, the United State, said. * * * THE AMERICAN note ther pointed to the Yalta agreement the Potsdam agreement, and othe: pacts, all of which bar militar; organizations in Germany. Russi was a party to all those agree ments. - - . The British note, paralleling the American, accused the Rus- sian$ of promoting "the revival of the militaristic and aggres- sive system which the four oe- cupying powers fought togethet to destroy." The French note was consider ably more guarded in its language It said the East German polic have "in effect a definitely mill tary character." THE STATE Department alon, with its protest released a sum mary of what the American gov ernmentdknows about the force This said: There is in the force a low state of morale induced amang other things by substandard per- sonal freedom and by the lack of purpose. Many members of the force were "virtually coerced into enlisting." The government's summary C the organization said that at som future time it should be capabl either of providing the core of. a expanded German army or servin as a militia to suppress interna disorder and maintain Commu nist-Soviet control. I BERLIN--(P)-East Germany's blue-shirted Communist youth got a warning from their own police today to keep out of West- ern Berlin on their Whitsuntide demonstration march. This put the final damper on boasts from some Communists quarters that half a million young Reds-whose advance formations already were massing here - would storm all Berlin this week- end. S* * * EASTERN Berlin police told' them they would find trouble-as Allied authorities and Western Germany police already had said -if they crossed the line. The West went ahead with preparations against any kind of demonstration that might break out Sunday during the dawn-to-dusk parade. West Berlin's 13,000 police will have quantities of tear gas bombs and special water-spouting trucks on hand. They will be backed by 7,000 to 8,000 Allied troops with guns. * * * THE WARNING to be orderly and not stray out of bounds was given to 50,000 youngsters already rallied here. Among them were 90.000 childrren frnm six tn 14 who World News Fall Officers To Be Elected Today By SL The Student Legislature wi meet in its spring election sessie at 7:30 p.m. today in the Unli to select its officers for the fa term. For the first time in a year ar a half, the SL presidency is bei: sought by more than one cand date. Quent Nesbitt, '5OBAd, preset SL president, and John Ryde '50, 1949 fall term president, we both unanimous choices for t -pffice. * * * THIS SPRING, however, i quite another story, with thi men and a possible fourth hot contesting the top SL post. Hugh Greenberg, '51, Ed Rei fel, '51, and George Roumel '51 are the announced cand: dates while Dave Belin, '51, x I By The Associated Press WASHINGTON-The United States promised military assistanVtM to Iran yesterday, increasing to 13 the lineup of nations committed to resist Communist expansion with American aid, i The uneasy southern neighbor of Soviet Russia agreed belatedly to terms by which arms and military equipment valued at an estimated $10,000,000 will be provided in the next several months. * * * * WRITERS POORLY PAID: Davies A ttacks Hollywood Myths ^ LIMA, Peru-- The list of dead in the ancient earthquake- shaken city of Cuzco rose to 56 yesterday, and officials feared WASHINGTON-The House approved yesterday a $930,000,- 000 military construction pro- gram which provides, among other things, for the building of By JOEL McKIBLE Screen writing is not the ex- orbitantly high salaried profes- sion most people belive it is, ac- cording to Valentine Davies, '27, president of the Screen Writer's (.u irl represents is technically a labor union but is open to member- ship on the part of everybody. It is the collective bargaining agent for 98 per cent of all mo- tion picture screen writers and has contracts with three major duct was the finest in the world. He added that in England the need by exhibitors for American movies has caused the govern- ment to raise the percentage of those alowed to be shown from d(1 Pr a n K . r pnt l i